Handling Vendor Deposits

To handle vendor deposits, you will initially create a purchase for the value of the deposit using the Deposit line item code; later, you will reverse that value with an expense-recognition purchase. 

About Deposit Purchases

Before you can create a deposit purchase, your system administrator must configure the Deposit line item code

Deposit purchases are different from regular purchases in a few important ways. One distinction is that they do not register in the Purchase Order Overview tab's Quantity Purchased column. In other words, even if you have generated multiple deposit purchases, the Overview tab will only consider expense-recognition purchases. However, the Overview tab does show the Deposit Balance in the lower-right:

Another difference is that deposit purchases will only contain a single line corresponding to the amount you are paying the vendor, as shown in this example:

When the deposit purchase is opened, aACE credits the A/P account and debits the deposit account that is specified in the Deposit LIC:

About Expense-Recognition Purchases

Later, you will reverse the deposit by creating an expense-recognition purchase. This purchase will have a line item to recognize each source of expense from the purchase order, as well as a line item to reverse the earlier deposit(s), as shown in this example:

When the expense-recognition purchase is opened, the deposit is reversed:

Methods for Generating Deposit Purchases

From a Purchase Order

  1. At the purchase order, click Management tab > Purchases tab, and click Plus () > Deposit.
  2. In the dialog box, enter the percentage of the deposit and click Continue.

From the Payment Dialog 

When you make a payment for a purchase order, the Enter Payment dialog allows you to flag the payment as a deposit. This method allows you to specify an exact amount for the deposit. When you mark this flag, the system automatically generates a deposit purchase for the Payment. 

Deposit Balance

A deposit is an asset representing unfulfilled vendor obligations. For this reason, the deposit balance must be at $0.00 before you can close the purchase order. If the deposit balance is greater than zero, aACE will keep the PO in Open status, even if the invoicing and shipping are complete.

You can review the outstanding deposit balance at the Order or Project Overview tab: